Core Viewpoint - Hyperscale Data, Inc. has successfully reduced its outstanding consolidated non-affiliated debt by approximately $25 million year-to-date, significantly improving its capital structure and positioning the company for long-term financial strength as it develops its AI data center in Michigan [1][2][3]. Debt Reduction and Financial Position - The $25 million debt reduction was achieved through repayments and strategic conversions, leading to lower leverage and improved liquidity ratios, enhancing the company's ability to access growth capital on favorable terms [2][3]. - This debt reduction is part of a broader strategy to build a financially resilient platform capable of supporting large-scale infrastructure development while delivering long-term value to stockholders [2]. AI Data Center Development - The company is advancing the development of its flagship AI data center in Michigan, which is expected to serve as a hub for enterprise-grade and hyperscale AI workloads [3]. - The Michigan facility, covering 617,000 square feet, aims to increase its power capacity to 70 megawatts (MW) over the next 20 months, with a long-term goal of reaching approximately 340 MW, contingent on agreements with local utility providers and securing funding [3]. Strategic Positioning - The company is positioning itself to be financially agile and operationally ready to meet the exponential growth in AI and compute-intensive applications, enabling it to attract strategic partners and optimize capital deployment [4]. - The divestiture of Ault Capital Group, Inc. is expected to occur in the first quarter of 2026, which will further streamline the company's focus on data center operations and high-performance computing services [6].
Hyperscale Data Reduces Debt by $25 Million, Strengthening Capital Structure and Bolstering Financial Flexibility Ahead of Michigan AI Data Center Expansion